Getting 4-5 deals a month?

Question

Can anybody give me a basic idea of how many offers I would need to put in to get 4-5 deals a month? How many houses would I have to see? Just a couple of hints would be greatly appreciated. Thanks in advance.

Jerry Puckett · Answer

Hi Nick,
Looking over your profile at your level of experience, I can tell you're no stranger to Real Estate, or marketing for that matter. The other responses on this thread are top notch, and the only thing I might add to it is to direct your marketing to the right target. As an agent, you were used to people wanting to sell, but who had time to wait for their price. As a wholesaler, one who wants to do as many deals a month as you do, your focus has to shift to those who need to sell. You are going to need to talk to many, many people to hit that goal, so do all you can to make sure you talk to the right ones.

My numbers typically go like this: for every 30 calls, 10 good leads, 2 deals. That's what my marketing budget is based on. Last month, same budget, 68 calls, 14 qualified leads, 4.5 deals, 4 others passed to areas outside our business model (the net from those referals more than made up marketing costs.) But last February, same budget, 0, as in ZE-RO calls.

One last thing: if you're planning on handling the number of calls it's going to take to get that many deals each month, get help. No way will you be able to handle all the calls, do all the property research, schedule all appointments, walk all the properties, negotiate and draft all the contracts and assignments, AND build your buyer's list, market your deals, set up next month's marketing, etcetera, etcetera, all by your lonesome. Any one who thinks wholesaling is a walk in the park on the way to the bank is in for a surprise. I and everyone I know in the business work our butts off.

Tadd Bennett · Answer

For me when it comes to Wholesaling its not really the offers that i have trouble with or them actually getting rejected. Its actually finding a deal. Ive went through 30+ leads and only came up with 2 deals. That's why marketing is key, the more people you have calling in, the more chances for a real deal. You just gotta get out there and make it happen. You might get 3 deals in a week and then be still for a month, ups and downs. If people are not accepting your offers and your offers are right where they should be then these people are not " motivated sellers" and not what your looking for to begin with.

Vikram C. · Answer

Focus on doing one successful deal first.  And then the second.  And you will soon realize what it is going to take for you to do 4-5 deals per month with your skills, strategy and resources.

Edwards numbers are great, but they are for his business model + his business skills + his personal attributes and in his market.

Joe Dube · Answer

Hi Nick,

These guys have given you great advice.  I track all my marketing to sellers and buyers with an excel spread sheet.  I've had months where I get 100 calls and I get 4 or 5 deals that I sell for $12K or more per month.  Do you know how much advertising dollars you need to lay out to get 1 contract?  Once you figure that out and the numbers are consistent for 3 or 4 months just invest more dollars in marketing to get the # of deals you desire.  Sounds simple, and it is if you pay attention to the details when marketing.  REMEMBER if you quit marketing then the phone stops ringing and you're out of business.  It's that simple.

Hope this helps...

Will Barnard · Answer

It appears to me that just about all the responses were taking the position of you getting leads for deals from homeowners (lots of calls, lots of marketing, etc.) The item missing from the equation is this: What is YOUR strategy? If making hundreds of calls and 20-50 offers is not your cup of tee, go after REO properties. No marketing needed, and the phone calls are you making them to agents and brokers, not in reverse. The more top dog REO brokers you have in your pocket, the more deals you can do.
The best part - if you learn how, you can get these REO's before they hit the MLS which eliminates your competition!

Jerry Puckett · Answer

Absolutely correct. Not to mention a rather large learning curve. It took me a long time to get to the point where I knew just how to handle each call. Still get some that that throw me for a loop. Then I go crying to you Guys and Gals :lol:

But I agree completely with Vikram, you learn by doing. With patience and persistance, you get better, you do more..."rinse and repeat" as Bryan Hancock would say. Eventually, it seems you come to a point of critical mass where it all comes together and your business takes off.  :woohoo:

Account Closed · Answer

Nick,  I would venture to guess someone else track record will probably not help you much.  There are a number of things that could influence your deal rate.

First of all you would want to know your response rates on various forms of advertising.

Of those that respond how many get converted into sales.  Obviously  negotiating skills will play into this.

So you really are looking at two separate factors that will add up to one sale.

Another metric sales people often follow as well is the number of customers (buyers) have repeat business.

Jerry Puckett · Answer

I would really like to learn that. Can you point us in the right direction? I've always thought that to do REO's right, it took cash. Quite a lot more than I pay for marketing,

And Nick, feel free to PM or e-mail me, I'll help you as I can

Bryan Hancock · Answer

In my mind the question isnâ€™t how many deals you look at.  It is how many QUALIFIED deals you look at and how much you have to spend to generate said qualified leads.  This will vary based on your location drastically.

One of the formulas that I have seen in the past is 20 leads equals 1 deal worth buying.  Leads cost on average around $200/lead to create.  Note that these are GOOD leads that are qualified and worth analyzing.  Soâ€¦each lead worth buying ON AVERAGE costs around $4000.  This average $4000-to-generate lead yields on average $15k in profit.  So you spend $4k to generate $15k in revenue and net $11k.  Some deals will yield more and some lessâ€¦these are AVERAGES.

Keep in mind that you can go broke prior to finding a deal worth doing and that averages donâ€™t really mean much until your operation is humming along nicely.  The market also changes and throws everything out of whack.

Hope this helpsâ€¦I am sure your experience will be different.  Just keep track of everything and rinse/repeat as necessary.

Joseph Sanchez · Answer

Hey Nick,

I would certainly listen to all the advice you have receive thus far. All I can advise you is how I things are shaking out for me. For every 20 properties I analyze, I look at 10, I write offers on 5, and close on 1. So if you just need a simple plan while you perfect your marketing strategy I would recommend the above formula. Good Luck!

Joe

Getting 4-5 deals a month?

Most Popular Reply